filings.toolsItem 6. Selected Financial Data
9K characters. Original on sec.gov · Markdown
Item 6. Selected Financial Data
The following table presents NRG's historical selected financial data. This historical data should be read in conjunction with the Consolidated Financial Statements and the related notes thereto in Item 15 and Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company has completed several acquisitions and dispositions, as described in Item 15 — Note 3, Acquisitions, Discontinued Operations and Dispositions.
| Year Ended December 31, | |||||||||||||||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
| (In millions except ratios and per share data) | |||||||||||||||||||
| Statement of income data: | |||||||||||||||||||
| Total operating revenues | $ | 9,478 | $ | 9,074 | $ | 8,915 | $ | 10,842 | $ | 11,387 | |||||||||
| Total operating costs and other expenses (a) | (8,929 | ) | (8,953 | ) | (9,208 | ) | (11,010 | ) | (11,606 | ) | |||||||||
| Impairment losses (b) | (99 | ) | (1,534 | ) | (483 | ) | (4,823 | ) | (5 | ) | |||||||||
| Operating income/(loss) | 982 | (741 | ) | 33 | (4,347 | ) | 537 | ||||||||||||
| Impairment losses on investments | (15 | ) | (79 | ) | (268 | ) | (40 | ) | — | ||||||||||
| Income/(loss) from continuing operations, net | 460 | (1,345 | ) | (956 | ) | (6,379 | ) | (223 | ) | ||||||||||
| (Loss)/income from discontinued operations, net | (192 | ) | (992 | ) | 65 | (57 | ) | 355 | |||||||||||
| Net income/(loss) attributable to NRG Energy, Inc. | $ | 268 | $ | (2,153 | ) | $ | (774 | ) | $ | (6,382 | ) | $ | 134 | ||||||
| Common share data: | |||||||||||||||||||
| Basic shares outstanding — average | 304 | 317 | 316 | 329 | 334 | ||||||||||||||
| Diluted shares outstanding — average | 308 | 317 | 316 | 329 | 339 | ||||||||||||||
| Shares outstanding — end of year | 284 | 317 | 315 | 314 | 337 | ||||||||||||||
| Per share data: | |||||||||||||||||||
| Net income/(loss) attributable to NRG — basic | $ | 0.88 | $ | (6.79 | ) | $ | (2.22 | ) | $ | (19.46 | ) | $ | 0.23 | ||||||
| Net income/(loss) attributable to NRG — diluted | 0.87 | (6.79 | ) | (2.22 | ) | (19.46 | ) | 0.23 | |||||||||||
| Dividends declared per common share | 0.12 | 0.12 | 0.24 | 0.58 | 0.54 | ||||||||||||||
| Book value | $ | (4.35 | ) | $ | 6.20 | $ | 14.09 | $ | 17.29 | $ | 34.68 | ||||||||
| Business metrics: | |||||||||||||||||||
| Cash flow from operations | $ | 1,377 | $ | 1,610 | $ | 1,908 | $ | 1,419 | $ | 1,620 | |||||||||
| Liquidity position (c) | 1,977 | 2,760 | 1,768 | 2,102 | 2,136 | ||||||||||||||
| Return on equity | (21.72 | )% | (109.40 | )% | (17.41 | )% | (117.45 | )% | 1.15 | % | |||||||||
| Ratio of debt to total capitalization | 126.12 | % | 81.40 | % | 68.26 | % | 63.96 | % | 46.61 | % | |||||||||
| Balance sheet data: | |||||||||||||||||||
| Current assets | $ | 3,600 | $ | 4,437 | $ | 6,747 | $ | 8,231 | $ | 9,454 | |||||||||
| Current liabilities | 2,398 | 3,354 | 4,736 | 5,215 | 5,732 | ||||||||||||||
| Property, plant and equipment, net | 3,048 | 5,974 | 7,877 | 8,283 | 11,823 | ||||||||||||||
| Total assets | 10,628 | 23,355 | 30,716 | 33,738 | 41,551 | ||||||||||||||
| Long-term debt, including current maturities, and capital leases | 6,521 | 9,384 | 10,071 | 10,867 | 11,184 | ||||||||||||||
| Total stockholders' equity | $ | (1,234 | ) | $ | 1,968 | $ | 4,446 | $ | 5,434 | $ | 11,695 |
| (a) | Excludes impairment losses and impairment losses on investments |
| (b) | Includes goodwill impairment as described in Item 15 - Note 10, Goodwill and Other Intangibles, to the Consolidated Financial Statements |
| (c) | Liquidity position is determined as disclosed in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Liquidity and Capital Resources, Liquidity Position. It excludes collateral funds deposited by counterparties of $33 million, $37 million and $2 million as of December 31, 2018, 2017 and 2016, respectively, which represents cash held as collateral from hedge counterparties in support of energy risk management activities. It is the Company's intention to limit the use of these funds for repayment of the related current liability for collateral received in support of energy risk management activities |
The following table provides the details of NRG's operating revenues:
| Year Ended December 31, | |||||||||||||||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
| (In millions) | |||||||||||||||||||
| Energy revenue | $ | 2,677 | $ | 2,725 | $ | 3,243 | $ | 4,131 | $ | 4,215 | |||||||||
| Capacity revenue | 670 | 618 | 642 | 781 | 690 | ||||||||||||||
| Retail revenue | 7,110 | 6,374 | 6,332 | 6,907 | 7,371 | ||||||||||||||
| Mark-to-market for economic hedging activities | (209 | ) | 33 | (566 | ) | (138 | ) | 684 | |||||||||||
| Contract amortization | — | (1 | ) | (1 | ) | (1 | ) | 1 | |||||||||||
| Other revenues | 287 | 235 | 313 | 202 | 313 | ||||||||||||||
| Corporate/Eliminations | (1,057 | ) | (910 | ) | (1,048 | ) | (1,040 | ) | (1,887 | ) | |||||||||
| Total operating revenues(a) | $ | 9,478 | $ | 9,074 | $ | 8,915 | $ | 10,842 | $ | 11,387 |
(a) Inter-segment sales and net derivative gains and losses included in operating revenues
Energy revenue consists of revenues received from third parties as well as from the Company's retail businesses, for sales of electricity in the day-ahead and real-time markets, as well as bilateral sales. It also includes energy sold through long-term PPAs for renewable facilities. In addition, energy revenue includes revenues from the settlement of financial instruments and net realized trading revenues.
Capacity revenue consists of revenues received from a third party at either the market or negotiated contract rates for making installed generation capacity available in order to satisfy system integrity and reliability requirements. Capacity revenue also includes revenues from the settlement of financial instruments. In addition, capacity revenue includes revenues received under tolling arrangements, which entitle third parties to dispatch NRG's facilities and assume title to the electrical generation produced from that facility.
Retail revenue, representing operating revenues of NRG's retail businesses, consists of revenues from retail sales to residential, small business, commercial, industrial and governmental/institutional customers, revenues from the sale of excess supply into various markets, primarily in Texas, as well as product sales.
Mark-to-market for economic hedging activities includes asset-backed hedges that have not been designated as cash flow hedges and ineffectiveness on cash flow hedges.
Contract amortization revenue consists of the amortization of the intangible assets for net in-market C&I contracts established in connection with the acquisitions of Reliant Energy and Green Mountain Energy. These amounts are amortized into revenue over the term of the underlying contracts based on contracted volumes.
Other revenues consists of operations and maintenance fees, or O&M fees, construction management services, or CMA fees, sale of natural gas and emission allowances, and revenues from ancillary services. O&M fees consist of revenues received from providing certain third party and unconsolidated affiliates with services under long-term operating agreements. CMA fees are earned where NRG provides certain management and oversight of construction projects pursuant to negotiated agreements. Ancillary services are comprised of the sale of energy-related products associated with the generation of electrical energy such as spinning reserves, reactive power and other similar products. Other revenues also include unrealized trading activities.
Previous: Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. · Next: Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations